Jerry T. Stowell Country Futures Focus:Grains, Livestock Website: www.countryfutures.com E-mail: jstowell@kansas.net

COUNTRY FUTURES - February 1, 2012

COUNTRY COMMENTS BY JERRY STOWELL

CATTLE

By: Jerry Stowell

At 10:53 April LC are 7 lower at 128.50, March Feeders 25 lower at 155.27, while March corn is 2 1/2 higher at 64 1/2. 153.95 was the latest CME Feeder Index. Expect to see 153.78 up 7 tonight. Noon Beef saw choice up 104 at 184.27.

In the south, bids are 120 with 126-127 ask. Our call is 124 up to 125 or steady to up $1.

Futures have traded up and down the ladder for 70-90 points a couple times today. We are watching closely for spec trade selling points in the April LC. For Hedgers a lot of our OPEN SELL orders were filled today at 160 in the August Feeders. There is nothing wrong with Hedging 160 Feeders, especially if you bought the calves last fall.

Grains Update by Darrell Holaday

The new month brought in another wave of outside money into the commodities and the grain markets have benefited, but the early rally strength has faded. Fundamentally, the wheat market is still the leader as buying continues to surface on the back of bitter cold conditions in the Ukraine and comments by one of the state leaders indicated overnight that grain production could be 50% of last year. Much of this is based on drought conditions in wheat areas. There is also continued speculation that Russia will impose a grain export tax. The fall from the early high in wheat can be tied to weather models that are adding additional moisture into the system that will move through the Plains HRW are starting tomorrow night through early Saturday. If the models are correct, the moisture will be very good for the winter wheat.

USDA reported 120,000 ton sale of US soybeans to China. This was rumored over the last 24 hours. But is has been helpful to the soybean complex. Actual weather and forecasts continue to be very beneficial to the South American crop. Weather in South America is bearish at this point.

Corn was supported early by wheat, but has fallen well off the early highs and has challenged yesterdays close after being .11 higher early. A break in crude oil pulled the market off its highs. There are likely sell stops below the $6.39 level in the March corn contract.

In general, all of the grains benefited early on some new fund money moving in because of the new month and another break in the US dollar. At 11:51 corn is up .03, soybeans up .14, and wheat is up .05.